27 Sep Artificial Intelligence, Nuclear Energy, and Critical Minerals: The Geostrategic Stakes of U.S. Partnerships in Latin America
By,
CDR Jose Adan Gutierrez, USN (Ret): Geostrategic Analysis
Dr. Luis Noguerol: Chief Cyber and IT
Dr Rafael Marrero: Chief Economist
MSI²
Abstract
This paper analyzes the geostrategic and geoeconomic importance of U.S. partnerships in artificial intelligence (AI), nuclear energy, and critical minerals across Latin America, focusing on Argentina as a case study. These partnerships are evaluated in light of Argentina’s ongoing financial crisis, which has triggered U.S. offers of stabilization support. By embedding AI ecosystems, supporting small modular reactor (SMR) deployment, and securing access to critical mineral supply chains, Washington seeks to reassert influence in the hemisphere. The analysis concludes that while China will remain a significant actor, U.S. initiatives can rebalance the strategic landscape—if paired with conditional support and risk mitigation—resulting in a win-win outcome and sending a powerful message: nations that stand with the United States rather than China may find decisive U.S. backing in times of crisis.
Introduction
Latin America has re-emerged as a pivotal arena in the U.S.-China rivalry. Beijing has expanded from commodity trade into high-tech sectors, securing stakes in lithium, copper, and rare earth mining while investing in major ports such as Peru’s Chancay (Reuters, 2024a; Financial Times, 2024). China’s influence also includes digital infrastructure through Huawei, cloud services, and space assets such as the Neuquén deep-space facility in Argentina, whose opaque lease terms raise dual-use concerns (Reuters, 2019).
In parallel, Washington is pursuing an integrated strategy combining AI, nuclear energy, and critical mineral partnerships to restore leadership in the hemisphere (U.S. Department of State, 2025a). The current economic crisis in Argentina and the U.S. offer of stabilization support add urgency and complexity to this effort (Reuters, 2025; Financial Times, 2025a).
AI Partnerships as Strategic Tools
Artificial intelligence is at the center of great-power competition. The United States is promoting “American AI” through initiatives such as the Partnership for Global Inclusivity on AI (PGIAI), launched with industry partners to expand AI access and training globally (U.S. Department of State, 2024). The White House’s AI Action Plan (2025) explicitly identifies diplomacy and standard-setting as tools to align partner nations with U.S. frameworks (White House, 2025).
By embedding U.S.-based AI ecosystems in Latin America, Washington offers democratic governance standards and trusted digital infrastructure. This strategy not only supports innovation but also reduces the risk of dependency on Chinese platforms, which carry surveillance and data security concerns (Altman, 2025). While outcomes are not guaranteed, these initiatives increase the likelihood that regional AI standards will align with U.S. interests.
Argentina: A Strategic Case
AI and Digital Capacity
Argentina’s high internet penetration (near 90%) and growing tech sector position it as a viable AI hub (Infobae, 2025). The Milei government has created incentives for foreign investment, signaled closer alignment with Washington, and pursued deregulation to attract AI development (CSIS, 2025). Analysts argue this trajectory could make Argentina a showcase for U.S.-aligned AI in the Global South (CSIS, 2025).
Beyond technological cooperation, a collaborative AI ecosystem offers tangible economic and infrastructural support that stabilizes Argentina as a regional partner (Korn & Cruz, 2025). Direct access to software, cloud infrastructure, and expert training programs accelerates digital transformation, benefiting startups, academic research, and public sector modernization. Embedding U.S. frameworks also assures quality, trust, and responsible use of advanced analytics in areas such as health, education, and the management of public resources. In this way, American AI becomes not only a tool of influence but a practical resource that strengthens democratic governance and data security standards (ECLAC, 2025).
Nuclear Energy and AI Power Needs
AI infrastructure demands massive, constant electricity. Argentina’s legacy in nuclear innovation provides an advantage. In December 2024, President Milei launched a plan to deploy SMRs to power data-intensive industries (Infobae, 2025). In 2025, Argentina became the first Latin American country to join the U.S. State Department’s FIRST program, which promotes safe and responsible deployment of SMRs (U.S. Department of State, 2025b).
Argentina’s nuclear expertise creates fertile ground for U.S.-supported SMR deployment, providing reliable, carbon-free power for AI data centers. This synergy elevates the partnership beyond simple technology transfer, embedding U.S. technological leadership deep within Argentina’s energy landscape amidst financial instability. It ensures that Argentina can power its digital transformation sustainably, with reactors acting as “digital dams” fueling the next generation of AI infrastructure.
Critical Minerals and Rare Earths
Argentina holds significant reserves of lithium, copper, uranium, and other critical minerals. As of 2025, the country had 71 lithium and 35 copper projects in development (Infobae, 2025). U.S.-Argentina agreements signed in 2024 aim to secure non-Chinese supply chains, supported by agencies such as the Development Finance Corporation. Copper demand is especially pressing: hyperscale AI data centers can require up to 50,000 tons of copper, compared with 5,000–15,000 tons for conventional centers (Copper Development Association, 2025).
Critical minerals are not only about supply security; they are directly tied to supporting AI and digital infrastructure. Linking Argentina’s vast reserves to U.S.-aligned global markets ensures that lithium and copper feed into trusted supply routes rather than rival-controlled channels. This collaboration locks in both economic benefits and geopolitical leverage, securing resources vital to AI and clean energy industries.
Macroeconomic Fragility and Political Risk
Recent developments underscore Argentina’s acute vulnerabilities. In September 2025, the country spent more than $1 billion in reserves defending the peso, fueling fears of insolvency (Financial Times, 2025a). The Milei administration faces political turbulence after losing Buenos Aires Province to the opposition, raising doubts about reform sustainability (Wall Street Journal, 2025).
The United States has responded with public offers of support. President Donald Trump and Treasury Secretary Scott Bessent have explored stabilization mechanisms, including swap lines and direct U.S. market interventions, while officially avoiding the term “bailout” (Reuters, 2025; Al Jazeera, 2025). These overtures highlight both opportunity and risk: Washington can consolidate Argentina’s alignment, but association with Milei’s controversial austerity may trigger domestic backlash.
This volatility means that U.S. partnerships in AI, nuclear, and minerals cannot be insulated from Argentina’s macroeconomic fragility. Contingency planning, phased investments, and conditionality on governance are essential to safeguard U.S. interests.
Regional Dynamics
Brazil
Brazil, Latin America’s largest economy, generates over 80% of its electricity from renewables, with hydropower around 48–56% and wind/solar reaching a record 34% in August 2025 (Ember, 2025; Associated Press, 2025a). These conditions make it attractive for AI and cloud investment. Microsoft has committed R$14.7 billion (US$2.7 billion) and Amazon Web Services R$10.1 billion (US$1.8 billion) for infrastructure projects (Reuters, 2024b; Microsoft, 2024). However, Brazil also deepens ties with China through joint AI labs and semiconductor discussions, reflecting its balancing approach (World Economic Forum, 2025).
Chile and Peru
Chile is the world’s largest copper producer and a leading lithium exporter. Its lithium qualifies for U.S. EV tax credits under the Inflation Reduction Act due to its FTA status, creating opportunities for U.S. supply chain integration (U.S. Treasury, 2024; Reuters, 2024c). Peru, rich in copper and emerging lithium deposits, remains contested ground. China controls 60% of the Chancay port, inaugurated in 2024, highlighting Beijing’s strategic foothold (Reuters, 2024a; Financial Times, 2024). U.S. engagement in Peru must focus on sustaining open mineral flows and countering monopolization of logistics corridors.
Mexico and Central America
Mexico is central to U.S. supply chains through the USMCA framework. Washington remains concerned about Chinese firms exploiting Mexico as a backdoor into North American markets and has emphasized nearshoring incentives and trusted 5G providers to mitigate risks (Infobae, 2025). Similar concerns extend to Panama and the Caribbean, where Chinese port and telecom investments have raised security alarms.
Implications for U.S. Leadership
AI, nuclear, and mineral partnerships form a strategic triangle for U.S. re-engagement in the hemisphere. These efforts can:
1. Embed democratic technology standards in Latin America’s digital infrastructure.
2. Provide sustainable power for AI growth via SMRs and clean energy.
3. Secure critical mineral supply chains for both economic and defense applications.
Yet the Argentine crisis highlights that partnerships are not immune to macroeconomic fragility or political shifts. U.S. engagement must be adaptive: offering rapid support when allies falter, but conditioning assistance on transparency and governance. If Washington hesitates, China could step in with financial lifelines, as seen in other debt-stricken states.
Conclusion
Argentina illustrates both the promise and the peril of U.S. strategic partnerships. AI, nuclear energy, and mineral cooperation can serve as levers of alignment, but success depends on managing crisis volatility. By providing timely, conditional support, the United States can secure its strategic interests while helping Argentina stabilize.
Working closely with the U.S. also positions Argentina as an attractive hub for AI-enabled industries. Partnerships facilitate the creation of export-ready products and services tailored for Spanish-speaking markets and connect Argentine talent to global networks, expanding leadership opportunities. These dynamics ensure that AI progress remains grounded in democratic values and best practices, reinforcing long-term stability as the digital landscape evolves.
If executed effectively, this strategy offers a genuine win-win: Argentina gains stability and access to cutting-edge technologies, while the U.S. secures critical supply chains and influence in its near-abroad. Most importantly, it sends a powerful regional signal: those who stand with the United States—rather than with China—may find that Washington can deliver decisive support in times of need.
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The opinions expressed in this article are those of the author and do not necessarily reflect the views of the Miami Strategic Intelligence Institute (MSI²).